Desirability of installing some new equipment

Question

Problem:

Equity Corp. paid a consultant to study the desirability of installing some new equipment. The consultant recently submitted the following analysis.

Cost of new machine                                             $100,000
Present value of after-tax revenues from operation     90,000
Present value of after-tax operating expenses            20,000
Present Value of depreciation expenses                     87,500
Consulting fees and expenses                                       750